Welcome!

Cognitive Computing Authors: Liz McMillan, Elizabeth White, Yeshim Deniz, Pat Romanski, Shelly Palmer

News Feed Item

Zacks Bull and Bear of the Day Highlights: Thoratec, J. C. Penney, Flextronics International, Google and Apple

CHICAGO, Dec. 14, 2012 /PRNewswire/ -- Zacks Equity Research highlights Thoratec Corp. (Nasdaq:THOR) as the Bull of the Day and J. C. Penney (NYSE:JCP) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Flextronics International Ltd. (Nasdaq:FLEX), Google (Nasdaq:GOOG) and Apple Inc. (Nasdaq:AAPL).

(Logo: http://photos.prnewswire.com/prnh/20101027/ZIRLOGO)

Full analysis of all these stocks is available at http://at.zacks.com/?id=2678.

Here is a synopsis of all five stocks:

Bull of the Day:

We maintain our recommendation for Thoratec Corp. (Nasdaq:THOR) at Outperform. Its earnings per share of $0.44 in the third quarter beat the Zacks Consensus Estimate. The company achieved 27% unit growth for HeartMate II in the third quarter.

Thoratec's competitor HeartWare has gotten approval, in November 2012, from the FDA for its Ventricular Assist System as a bridge to transplantation. However, there is no imminent competitive threat from HeartWare in the DT segment, as its product is not expected to be launched till 2015. We believe that the DT condition will account for the major part of growth in the Ventricular Assist Device (VAD) market.

Despite less visibility, Thoratec has expertise in product development. The company continues to do well in overseas markets despite economic turmoil in Europe. We maintain our recommendation on the stock with a price target of $44.00, based on a P/E of 27.5x our 2012 EPS estimate.

 Bear of the Day:

J. C. Penney (NYSE:JCP) posted a third-quarter 2012 loss of $0.93 per share that fared worse than the earnings of $0.18 in the year-ago quarter and the Zacks Consensus Estimate of loss of $0.08. The company has missed the Zacks Consensus Estimate in the last four quarters by an average of 328.2%. Total revenue also fell 26.6%, whereas comp sales slid 26.1%.

We observe that despite a well-diversified supplier base, the company has been struggling against other retail chains. Its dismal results dashed those hopes at least for the near term. Moreover, erratic consumer behavior and a sluggish economic recovery still remain matters of concern.

Currently, we maintain our Underperform recommendation on the stock. Our target price of $26.00 is based on a price-to-cash-flow multiple of 4.8X.

Latest Posts on the Zacks Analyst Blog:

Flextronics to Buy Motorola Assets

Electronic product contract manufacturer, Flextronics International Ltd. (Nasdaq:FLEX) recently announced an agreement with Motorola Mobility LLC to acquire the latter's manufacturing facility and equipment in Tianjin, China and related equipment in Jaguariuna, Brazil for an undisclosed amount. The deal is expected to be completed by the end of first half of calendar year 2013.

In May 2012, Google (Nasdaq:GOOG) acquired Motorola Mobility for approximately $12.5 billion. The current deal reflects Google's strategy of downsizing Motorola's existing operations in order to save cost. The deal will make Flextronics Motorola's biggest outsourcing partner.

Currently, Flextronics serves both Google and Apple Inc. (Nasdaq:AAPL). We believe that Flextronics is well positioned to benefit from the growing rivalry between these two companies over the long term.

Flextronics expects the deal to be accretive on both operating income and earnings per share basis for fiscal year 2014. Revenue potential is expected to be of several billions and operating margin remains within the target range for its High Velocity Business segment. The company expects to earn a return on invested capital ("ROIC") of 20% going forward.

Flextronics announced that the two facilities, along with equipment and assets are worth approximately $75.0 million and the company is not paying any premium for these items. Moreover, Flextronics will acquire a highly trained and skilled ready-to-deploy employee group, which will save it a lot of time and training money, in our view.

We believe that the deal will be significantly beneficial for Flextronics as it will help in expanding the company's manufacturing capacity in the low cost regions of China and Brazil. Notably, in August this year Nokia Siemens Network signed a contract with Flextronics to open an assembly line in Brazil.

Acquisitions have been an integral part of Flextronics' growth story. Although most of the acquisitions were that of start-ups and small companies, they helped Flextronics to expand its presence in the communications, medical, infrastructure and automotive sectors. We believe that the Motorola facility acquisition will further drive its growth prospects over the long term.

However, Google's intentions regarding the Motorola hardware operations are not very clear. The search giant has already announced its intentions of exiting the entry-level low-margin handset business and focusing on high-end smartphones, where Motorola used to have minimum presence.

We believe that this uncertainty related to Google's motive over Motorola's handset manufacturing business will be a significant headwind for Flextronics going forward. If Google suddenly decides to wind up the whole business, both the current facilities will become idle (currently they will only manufacture Motorola handsets), which will hurt Flextronics' top-line growth going forward.

Moreover, macro-economic concerns and weak end-market demand are the other major concerns in the near term.

We have an Underperform recommendation on Flextronics over the long term. Currently, Flextronics has a Zacks #4 Rank (Sell).

Get the full analysis of all these stocks by going to http://at.zacks.com/?id=2649.

About the Bull and Bear of the Day

Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.

About the Analyst Blog

Updated throughout every trading day, the Analyst Blog provides analysis from Zacks Equity Research about the latest news and events impacting stocks and the financial markets.

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=7158.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD from MIT Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment

Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4582.

Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.

Follow us on Twitter:  http://twitter.com/zacksresearch

Join us on Facebook:  http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.

Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
[email protected]
http://www.zacks.com 

SOURCE Zacks Investment Research, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Systena America will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Systena Group has been in business for various software development and verification in Japan, US, ASEAN, and China by utilizing the knowledge we gained from all types of device development for various industries including smartphones (Android/iOS), wireless communication, security technology and IoT serv...
DevOps at Cloud Expo – being held October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA – announces that its Call for Papers is open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's largest enterprises – and delivering real r...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
In order to meet the rapidly changing demands of today’s customers, companies are continually forced to redefine their business strategies in order to meet these needs, stay relevant and continue to see profitable growth. IoT deployment and development is integral in this transformation, and today businesses are increasingly seeing the value of investing their resources into IoT deployments. These technologies are able increase ROI through projects such as connecting supply chains or enabling sm...
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Outscale, a global pure play Infrastructure as a Service provider and strategic partner of Dassault Systèmes, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2010, Outscale simplifies infrastructure complexities and boosts the business agility of its customers. Outscale delivers a secure, reliable and industrial strength solution for its customers, which in...
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services provider, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus intern...
Everywhere we turn in our industry we can find strong opinions about the direction, type and nature of cloud’s impact on computing and business. Another word that is used in every context in our industry is “hybrid.” In his session at 20th Cloud Expo, Alvaro Gonzalez, Director of Technical, Partner and Field Marketing at Peak 10, will use a combination of a few conceptual props and some research recently commissioned by Peak 10 to offer a real-world consideration of how the various categories of...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Multiple data types are pouring into IoT deployments. Data is coming in small packages as well as enormous files and data streams of many sizes. Widespread use of mobile devices adds to the total. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the tools and environments that are being put to use in IoT deployments, as well as the team skills a modern enterprise IT shop needs to keep things running, get a handle on all this data, and deli...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
In his opening keynote at 20th Cloud Expo, Michael Maximilien, Research Scientist, Architect, and Engineer at IBM, will motivate why realizing the full potential of the cloud and social data requires artificial intelligence. By mixing Cloud Foundry and the rich set of Watson services, IBM's Bluemix is the best cloud operating system for enterprises today, providing rapid development and deployment of applications that can take advantage of the rich catalog of Watson services to help drive insigh...
Existing Big Data solutions are mainly focused on the discovery and analysis of data. The solutions are scalable and highly available but tedious when swapping in and swapping out occurs in disarray and thrashing takes place. The resolution for thrashing through machine learning algorithms and support nomenclature is through simple techniques. Organizations that have been collecting large customer data are increasingly seeing the need to use the data for swapping in and out and thrashing occurs ...
SYS-CON Events announced today that delaPlex will exhibit at SYS-CON's @CloudExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. delaPlex pioneered Software Development as a Service (SDaaS), which provides scalable resources to build, test, and deploy software. It’s a fast and more reliable way to develop a new product or expand your in-house team.
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend @CloudExpo | @ThingsExpo, June 6-8, 2017, at the Javits Center in New York City, NY and October 31 - November 2, 2017, Santa Clara Convention Center, CA. Learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
SYS-CON Events announced today that EARP Integration will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. EARP Integration is a passionate software house. Since its inception in 2009 the company successfully delivers smart solutions for cities and factories that start their digital transformation. EARP provides bespoke solutions like, for example, advanced enterprise portals, business intelligence systems an...
SYS-CON Events announced today that Progress, a global leader in application development, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Enterprises today are rapidly adopting the cloud, while continuing to retain business-critical/sensitive data inside the firewall. This is creating two separate data silos – one inside the firewall and the other outside the firewall. Cloud ISVs oft...
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.